The Committee observed that while Department of Fertilizers had projected an outlay of ~₹ 1.84 lakh crore for its various schemes in 2025-26, the Ministry of Finance had reduced this allocation by ~7%.
- The reduction has been made in both the Nutrient-Based Subsidy (NBS) Scheme and the Urea Subsidy Scheme.
Other Key Observations of the Report
- Strengthening Fertilizer Security: Geopolitical disruptions and price volatility have led to shortages of critical fertilizers. E.g., DAP.
- Technological Advancements and Mining: Lack of initiatives to secure mining leases for essential raw materials like phosphates and potash.
- Revision in Grades of NPKS (nitrogen-phosphorus-potassium-sulphur) Fertilizers: Soil-specific fertilizer grades are not always available, leading to additional costs for farmers.
- Direct Benefit Transfer (DBT): DBT system lacks a mechanism to verify genuine beneficiaries, leading to misuse.
- Nano Fertilizers: Nano Urea and Nano DAP show promise in improving crop yields but require further research.
Recommendations
- Supply Compliance and Balanced Distribution: Enforce supply compliance with penalties, prioritize balanced fertilizer distribution based on soil requirements.
- Fertilizer Crisis Early Warning System: Establish FCEWS to predict shortages and maintain strategic reserves.
- Integrate Aadhaar authentication with the Farmer’s Registry for better targeting and dynamic purchase caps based on landholding size.
- Promote Urea Gold to improve soil health, crop yield, and reduce reliance on conventional urea.
Nutrient-Based Subsidy (NBS) Policy
Urea Subsidy Scheme
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